IMF raises age pension poser with Hockey

Paul Osborne, AAP Senior Political Writer

Australians may have to wait longer to get the pension and jump more hurdles for welfare benefits after the May federal budget.

Treasurer Joe Hockey has advice from the International Monetary Fund that without changes, the cost of providing healthcare and pensions would rise by $93 billion a year by 2030.

It is forecast that between 2010 and 2050, the number of people in Australia aged 65 to 84 will double, and the number of people 85 and older will quadruple.

"It is the economic and fiscal impact of an ageing society that too many governments have chosen to ignore for too long," Mr Hockey told a forum on the sidelines of the G20 finance ministers' meeting in Washington.

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"These trends will have a big impact on the sustainability of our budget. "There is no easy solution." The government would either need to raise taxes or reduce access to the pension system so it was only available to the most vulnerable, Mr Hockey said.

The IMF report said increasing the pension age was a "worthy consideration".

It echoed a report by the Productivity Commission last year which recommended the pension age rise to 70.

In the long term, the solution lay in growing the economy through removing red and green tape, reducing taxes, delivering greater workplace flexibility and building roads, rail and ports, Mr Hockey said.

All Australians needed to play their part in repairing the budget and the onus was on the government to explain why tough decisions were needed.

Outlining the key principles behind the government's budget thinking, he said welfare should be a "safety net, not a cargo net".